Performance Marketing

What’s a Good ROAS in 2025? Benchmarking Paid Media Performance Across Industries

Introduction

Return on Ad Spend (ROAS) is still the king of paid media metrics in 2025. But “good” ROAS isn’t a one-size-fits-all figure, it depends on your industry, goals, margins, and funnel strategy. If you’re wondering what benchmarks to aim for this year, we’ve broken it down by vertical and explained how to evaluate ROAS in the context of long-term growth.

What Is ROAS, and Why Does It Matter?

ROAS = Revenue Generated / Ad Spend

For example, if you spend $10,000 on ads and generate $40,000 in revenue, your ROAS is 4:1 (or 400%). This simple yet powerful metric tells you how efficiently your campaigns are generating revenue—and helps you decide whether to scale, pause, or optimize.

ROAS alone doesn’t tell the full story. It must be viewed alongside customer acquisition cost (CAC), profit margins, and customer lifetime value (CLTV) to understand true performance.

What’s a “Good” ROAS in 2025?

Here’s what we’re seeing across industries based on TCI’s internal benchmarks and market insights:

eCommerce:
Target ROAS: 3.5x to 5.5x
Lower average order value (AOV) brands typically aim for higher ROAS to offset ad costs. Lifetime value and repeat purchases play a big role in long-term success.
B2B SaaS:
Target ROAS: 2x to 4x
With higher customer acquisition costs (CAC) and longer sales cycles, success is measured by lead quality and conversion rates over time.
Legal Services:
Target ROAS: 5x to 10x
Although conversion volume is low, each client has a high lifetime value. Local ad targeting is key to driving qualified leads.
Health & Wellness:
Target ROAS: 2.5x to 4x
High competition across paid platforms makes CRO (conversion rate optimization) critical for maintaining profitability.
Education & Online Training:
Target ROAS: 3x to 6x
With longer decision cycles and high consideration products, effective retargeting and funnel nurturing are essential.
Real Estate:
Target ROAS: 4x to 8x
High-ticket sales and offline conversions allow for a higher CPA, but ROAS must still be carefully tracked to ensure profitability.

3 Things That Influence ROAS Benchmarks

1. Business Model & Margins

A company selling $20 digital downloads needs a much higher ROAS than a B2B SaaS company with $2,000/month contracts. Know your margins, and model break-even points accordingly.

2. Sales Cycle Length

If your customers take 3 months to convert, front-end ROAS may look weak—but long-term value tells a different story. Make sure your attribution window matches your sales reality.

3. Funnel Maturity

Brands with a well-optimized landing page and retargeting strategy can turn more clicks into conversions, improving ROAS dramatically. CRO and analytics are key to sustainable gains.

Is High ROAS Always Good? Not Necessarily.

If your ROAS is 12x, it may mean you’re not spending enough to scale. There’s often a trade-off between efficiency (high ROAS) and growth (scaling budget with acceptable ROAS). Smart brands test budget increases to find their growth ceiling—the point where ROAS remains acceptable while revenue increases.